Following several years of stagnation under a composite structure, the Ghanaian Life Insurance Industry is spluttering into life once more. Elliot Williams examines how Separation, Technology and Innovation are helping insurers grab the opportunity.
There are strong indications showing that Life Insurance Business is the insurance industry’s future in Ghana; since the separation of life business from non-life, the sector has continued to improve in all its financial indicators.
The framers of that law to separate life from non-life in 2006 knew why they did so. In the past when it was in a composite operation, Life was deemed as a department under most insurance companies.
After 12 years of separation, Life insurers have brought technological and product innovation which now tend to boost income. For instance, the latest financial figures of Life companies before B&FT indicate that Life did better than non-Life counterparts in the year under review.
The latest unaudited Supervision Department Report (SDR) for the 4th quarter of 2019 by the National Insurance Commission (NIC), released recently, points to the fact that life financial indicators are growing faster than non-Life counterparts – which is proving the fact that “Life represents the insurance industry’s future in Ghana”.
As at the close of 2019, total assets of Life companies went up by 23% from GH¢3.12billion in 2018 to GH¢3.823billion in 2019. Five companies contributed about GH¢2,897.8billion to the total assets of the Life companies, representing 24.2% of total assets value.
The five companies are: Enterprise Life Assurance Company – GH¢837.4million: SIC Life Company – GH¢716.9million; Star Life – GH¢692.4million; Glico Life – GH¢391.2million; and Old Mutual Assurance Ghana – GH¢259.9million.
The rest are Metropolitan Life – GH¢182.1 million, Prudential Life – GH¢161.4 million, Donewell Life – GH¢105.5, Mi-Life – GH¢85.7, GN Life – GH¢61.8, Quality Life – GH¢59.6, Ghana Life – GH¢52.3, Phoenix Life – GH¢43.6.
Others are Allianz Life – GH¢32.9million; Vanguard Life – GH¢31.4million; Saham Life – GH¢23.6million; Ghana Union Assurance Life – GH¢18.9million; First Insurance – GH¢17.9million; and Exceed Life – GH¢13.6million.
The Life industry also generated total premium income of GH¢1.649billion as against non-Life’s GH¢1.558billion in the year under review
The five top income earners for that period are Enterprise life – GH¢436.6million; SIC Life – GH¢353.9million; Star Life – GH¢260.8million; Glico Life – GH¢120.9million; and Prudential Life – GH¢115.4million.
The five companies contributed gross premium income of GH¢1,287.6billion, representing 22% of the total market gross premium. Enterprise Life once again topped in income generation, followed by SIC Life; Star Life was third, with Glico Life fourth and Prudential Life fifth.
The other income earners include: Metropolitan Life GH¢68.7million; Old Mutual Life – GH¢48.5million; Ghana Life – GH¢21.6million; Saham Life – GH¢19.8million; Phoenix Life – GH¢19.6million; Allianz Life – GH¢18.6million; Quality Life – GH¢17.9million; Vanguard Assurance – GH¢17.4million; Donewell Life – GH¢16.2million; Ghana Union Assurance – GH¢10.6million; GN Life – GH¢9.7million; Hollard Life – GH¢6.8million; First Insurance Company – GH¢3.12million; and last, Exceed Life contributed only GH¢663,491.
| Company | Total Assets | Inv. Assets | Gross Premium | Net Written Premiums | Gross policyholder benefit paid | Net Policyholders Benefit Payment | Management Expenses | Commission Exp. | Commission Income | Policyholder Benefit Cover | Expense Ratio | Market Share |
| Allianz Life Insurance Company Limited | 32,919,417 | 18,025,867 | 18,557,383 | 17,734,783 | 2,368,667 | 2,368,667 | 12,865,337 | 5,046,938 | 110,153 | 350% | 105% | 1% |
| Donewell Life Insurance Company Limited | 105,569,734 | 95,805,478 | 16,155,332 | – 81,644 | 6,846,425 | 6,846,425 | 8,828,012 | 1,495,082 | 24,271 | 181% | 64% | 1% |
| Enterprise Life Assurance Company Limited | 837,415,962 | 689,884,331 | 436,673,957 | 187,188,934 | 195,415,088 | 196,625,659 | 69,529,964 | 67,739,520 | 142% | 32% | 34% | |
| Exceed Life Assurance Company Limited | 13,645,694 | 8,859,737 | 663,491 | 663,491 | 331,023 | 331,023 | 1,058,132 | 69,129 | 550% | 170% | 0% | |
| First Insurance Company Limited | 17,930,933 | 12,242,741 | 3,118,830 | 2,713,474 | 298,750 | 298,750 | 7,513,006 | 468,454 | 441% | 305% | 0% | |
| Ghana Life Insurance Company | 52,323,370 | 29,787,053 | 21,597,603 | 21,470,453 | 15,291,839 | 15,291,839 | 7,900,660 | 2,600,667 | 105% | 49% | 2% | |
| Ghana Union Assurance Life Company Limited | 18,977,933 | 10,743,258 | 10,607,889 | 8,394,013 | 1,969,940 | 1,969,940 | 4,731,997 | 1,412,744 | 436% | 101% | 1% | |
| Glico Life Insurance Company Limited | 391,220,429 | 343,333,384 | 120,982,255 | 119,690,357 | 81,122,729 | 81,122,729 | 28,910,630 | 8,561,152 | 226% | 31% | 9% | |
| GN Life Assurance Company Limited | 61,798,654 | 43,134,222 | 9,715,567 | 9,689,563 | 1,227,336 | 1,227,336 | 773,926 | 773,926 | 7,460 | 281% | 67% | 1% |
| Hollard Life Assurance Company Limited | 33,115,419 | 15,387,872 | 6,850,701 | 4,840,330 | 1,365,216 | 1,365,216 | 9,881,631 | 1,545,615 | 2299% | 236% | 1% | |
| Metropolitan Life Insurance Ghana Limited | 182,143,685 | 162,969,827 | 68,756,642 | 32,667,739 | 34,037,036 | 33,733,434 | 14,513,283 | 24,337,165 | 146% | 59% | 5% | |
| Mi Life Insurance Company Limited | 85,728,801 | 51,784,739 | 48,504,136 | 35,570,665 | 18,339,530 | 18,143,364 | 21,900,704 | 6,530,037 | 335,888 | 145% | 61% | 4% |
| Old Mutual Assurance Ghana Limited | 259,926,315 | 229,526,730 | 81,022,661 | 15,528,273 | 45,318,046 | 45,318,046 | 25,965,646 | 6,179,527 | 61,041 | 126% | 40% | 6% |
| Phoenix Life Assurance Company Limited | 43,638,556 | 29,581,864 | 19,599,712 | 1,652,692 | 9,405,064 | 9,206,090 | 8,000,238 | 1,644,337 | 202% | 50% | 2% | |
| Prudential Life Insurance Ghana | 161,423,825 | 130,594,235 | 115,395,681 | 114,093,884 | 25,784,760 | 25,784,760 | 41,038,004 | 29,270,145 | 150% | 62% | 9% | |
| Quality Life Assurance Company Limited | 59,619,815 | 52,844,418 | 17,936,279 | 6,577,857 | 11,216,373 | 11,216,373 | 6,718,861 | 722,995 | 123% | 42% | 1% | |
| Saham Life Insurance Ghana Limited | 23,574,660 | 19,784,736 | 19,849,550 | 12,806,603 | 4,978,604 | 4,978,604 | 6,061,518 | 3,727,177 | 439% | 76% | 2% | |
| SIC Life Insurance Company Limited | 716,940,455 | 622,787,372 | 354,582,824 | 353,973,287 | 245,094,274 | 244,732,597 | 68,806,707 | 20,260,308 | 171,142 | 22% | ||
| StarLife Assurance Company Limited | 692,442,150 | 605,835,193 | 260,811,891 | 257,367,833 | 99,470,744 | 99,470,744 | 46,302,771 | 32,539,416 | 940,614 | 129% | 31% | 20% |
| Vanguard Life Assurance Company Limited | 31,438,595 | 20,645,670 | 17,458,558 | 15,066,304 | 9,269,777 | 8,231,879 | 7,388,043 | 2,354,395 | 707,515 | 296% | 65% | 1% |
| Total | 3,821,794,402 | 3,193,558,727 | 1,648,840,942 | 1,217,608,891 | 809,106,220 | 808,263,474 | 398,689,070 | 217,278,729 | 2,358,085 |
Unaudited 2019 Financials
SOURCE thebftonline.com